Often, capability cannot be transferred because of the degree of organizational learning, unique culture ingredients or management expertise that the organization goes with.
Usually, the functioning organizations have a set of capabilities that enable it to achieve successful outcomes, whether financial, brand, or double bottom line. How to apply a business capability view to identify, map, build, improve capabilities, and integrate differentiated and dynamic business capabilities into multiple competencies, make the close alignment among the company’s strategic direction, and accelerate performance?
Strategic capability mapping helps to visualize the end to end enterprise and bridge the “gap of opportunity” between where you are and want to become: Capabilities continue being considered the market-relevant bundles of resources with the potential to drive competitiveness. The organization’s competency is based on a set of cohesive capabilities and how fast and effective they can be built upon. Processes underpin capabilities and capabilities underpin strategies. Capability can be mapped to the processes that instantiate the capability, the technology used, the information required or the talent involved. A structural capability mapping and development approach enable the strategic responsiveness of the company and improve organizational competency.
More often than not, capabilities are interdependent, so when you want to make a change to one of those capabilities, then your capability mapping and modeling help you understand relationships or dependencies, assists with a high-level impact assessment and delivery approach. Organizations have different roles and hierarchical structure, the capability view can leverage different perspectives from different roles, and question whether and how a business capability perspective adds value over the perspectives that they are accustomed to using and executes capability-based strategy smoothly. Capability mapping also helps the organization set the right priorities, bridge a multitude of gaps (resources, talent, processes) to improve their differentiated competency.
Capabilities move from base or competitive level to differentiated level: Every organization has a set of capabilities. The capability is the ability to perform a set of activities and achieve the desired effect under specified performance standards and conditions through combinations of ways and means (activities and resources). There are base capabilities to keep the business light on. There are “me too” type competitive necessaries to catch market share or scale up the business, there are also competitive differentiators that make the organization stand out as a leader due to the unique strength they build up.
Organizational capabilities have business outcomes; they collaborate with each other and are enabled by interrelated processes, services, functions, interfaces, resources in organization. Capabilities moving from base or competitive level to differentiated level happens when an organization decides to differentiate by taking an existing capability to the next level, or integrating different capabilities into unique business competencies. Capabilities evolve and move between categories based on the technology evolution, business driver, business model evolution etc. Forethoughtful organizations keep developing core competencies based on multilayered and integral business capabilities to gain the first mover advantage or sustain their leading position.
Capabilities move from fixed to dynamic, transactional to transformational: Business capabilities are fundamental pillars to achieve the corporate strategy. Due to fast paced change, digital capabilities are dynamic and recombinant by nature, without them, strategy execution cannot be sustained. Dynamic Capabilities are the organizational and strategic routines by which firms achieve new resource configurations as markets emerge, collide, split, evolve, etc. They are more complex in design, requiring cross-functional collaboration, embedding agility into processes for adapting to changes, and shortening the delivery cycles. And they are firm-specific resources/assets that are difficult if not impossible to imitate. Resource is an important building block of dynamic capability; the dynamic capability will further build the organization’s strengths in core areas and differentiated competency.
We can also categorize capability as transactional or transformational. Transactional capabilities keep the light on, transformational capability creates something new out of something old, reaching the new horizon out of an old vision and making a leap of business to the next level of growth. They also evoke fundamental evolutions in the basic political and cultural systems of the organization for achieving the high -performance business results.
Often, capability cannot be transferred because of the degree of organizational learning, unique culture ingredients or management expertise that the organization goes with. It is important to identify the key business capability and make an objective assessment of capability maturity, also hone them into organization-wide competency, making deliberately close alignment among the company’s strategic direction, its most distinctive capabilities, and most or all of its products and services, to execute capability-based strategy.
Strategic capability mapping helps to visualize the end to end enterprise and bridge the “gap of opportunity” between where you are and want to become: Capabilities continue being considered the market-relevant bundles of resources with the potential to drive competitiveness. The organization’s competency is based on a set of cohesive capabilities and how fast and effective they can be built upon. Processes underpin capabilities and capabilities underpin strategies. Capability can be mapped to the processes that instantiate the capability, the technology used, the information required or the talent involved. A structural capability mapping and development approach enable the strategic responsiveness of the company and improve organizational competency.
More often than not, capabilities are interdependent, so when you want to make a change to one of those capabilities, then your capability mapping and modeling help you understand relationships or dependencies, assists with a high-level impact assessment and delivery approach. Organizations have different roles and hierarchical structure, the capability view can leverage different perspectives from different roles, and question whether and how a business capability perspective adds value over the perspectives that they are accustomed to using and executes capability-based strategy smoothly. Capability mapping also helps the organization set the right priorities, bridge a multitude of gaps (resources, talent, processes) to improve their differentiated competency.
Capabilities move from base or competitive level to differentiated level: Every organization has a set of capabilities. The capability is the ability to perform a set of activities and achieve the desired effect under specified performance standards and conditions through combinations of ways and means (activities and resources). There are base capabilities to keep the business light on. There are “me too” type competitive necessaries to catch market share or scale up the business, there are also competitive differentiators that make the organization stand out as a leader due to the unique strength they build up.
Organizational capabilities have business outcomes; they collaborate with each other and are enabled by interrelated processes, services, functions, interfaces, resources in organization. Capabilities moving from base or competitive level to differentiated level happens when an organization decides to differentiate by taking an existing capability to the next level, or integrating different capabilities into unique business competencies. Capabilities evolve and move between categories based on the technology evolution, business driver, business model evolution etc. Forethoughtful organizations keep developing core competencies based on multilayered and integral business capabilities to gain the first mover advantage or sustain their leading position.
Capabilities move from fixed to dynamic, transactional to transformational: Business capabilities are fundamental pillars to achieve the corporate strategy. Due to fast paced change, digital capabilities are dynamic and recombinant by nature, without them, strategy execution cannot be sustained. Dynamic Capabilities are the organizational and strategic routines by which firms achieve new resource configurations as markets emerge, collide, split, evolve, etc. They are more complex in design, requiring cross-functional collaboration, embedding agility into processes for adapting to changes, and shortening the delivery cycles. And they are firm-specific resources/assets that are difficult if not impossible to imitate. Resource is an important building block of dynamic capability; the dynamic capability will further build the organization’s strengths in core areas and differentiated competency.
We can also categorize capability as transactional or transformational. Transactional capabilities keep the light on, transformational capability creates something new out of something old, reaching the new horizon out of an old vision and making a leap of business to the next level of growth. They also evoke fundamental evolutions in the basic political and cultural systems of the organization for achieving the high -performance business results.
Often, capability cannot be transferred because of the degree of organizational learning, unique culture ingredients or management expertise that the organization goes with. It is important to identify the key business capability and make an objective assessment of capability maturity, also hone them into organization-wide competency, making deliberately close alignment among the company’s strategic direction, its most distinctive capabilities, and most or all of its products and services, to execute capability-based strategy.
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